EFFECT OF TECHNOLOGICAL ADOPTION STRATEGY ON THE PERFORMANCE OF SACCOS IN KENYA

Paul Wambua Kavulya,Prof Willy Muturi,Dr Kennedy Ogollah,Dr Gladys Rotich

doi:10.47941/jbsm.222

Abstract

Purpose: To examine the effect of technological adoption strategy on the Performance of SACCOs in KenyaMethodology: The study was a cross-sectional survey with a descriptive research design. This design is appropriate because it is considered suitable for gathering information and generating appropriate conclusions with respect to the research questions. The target population of this study was the 181 authorized deposit taking SACCOs in Kenya that have been in existence for at least the last 5 years SASRA (2014). The firms which have been there for 5 years are considered to have adequate knowledge and have deposit mobilization strategies in place. The number of respondents was 181 CEOs and Business development managers, who are in charge of strategies. The study used questionnaires as the main data collection instrument that contained both open and closed ended questions. Questionnaires were preferred because they are effective data collection instruments that allow respondents to give much of their opinions pertaining to the research problem. Primary data was collected through administering of questionnaires to Members of the SACCOs, senior staff of the SACCOs and Cooperative Ministry/regulatory officials. The study employed descriptive analysis technique on the collected data. Multiple regression analysis was used to establish the relationship between the dependent and independent variables. Results were presented using frequency tables and figures.Results: Correlation analysis showed that technological adoption strategy and performance of Saccos are positively and significantly associated. Regression analysis indicated that technological adoption strategy has a positive and significant effect on performance of Saccos in Kenya. The hypotheses results indicated that there is a significant relationship between technological adoption strategy and performance of Saccos in Kenya. Unique contribution to theory, practice and policy: From the study findings, it was recommended that Saccos should lay out procedures and strategies such as product innovation, market innovation, technological innovation and process innovation so as to enhance their penetration in the market. Further, the study recommended the need for the firms to invest in technological advancement by equipping their staff with technical skills and also providing them with the necessary facilities.

Highlights

1.1 Background of the StudyThe market share of cooperative finance was equivalent to 14 percent in 2004 (Hesse & Cihak, 2007)
The correlation results revealed that there was a positive and a significant association between technological adoption strategy and performance of Saccos (r=0.788, p=0.000). This implies that technological adoption strategy and performance of Saccos change in the same direction
The findings reveal that computerization of processes; innovation capability and internet facility explained 55.8% of performance of Saccos in Kenya

Summary

Introduction

1.1 Background of the StudyThe market share of cooperative finance was equivalent to 14 percent in 2004 (Hesse & Cihak, 2007). Analysis from the IMF indicates that cooperative banks in developed countries tend to be more stable than commercial banks, especially during financial crisis, as their investment patterns tend to be less speculative and returns are less volatile (Hesse & Cihak, 2007). SACCOs should strive to maximize on the earnings to build the institutional capital (Branch & Cifunentes, 2001; Ombado, 2010). This institutional capital ensures the permanence and growth of the SACCOs even in turbulent economic times (Ogendo, 2012). It helps the SACCOs to grow and, remain economically and financially viable (Gijselinckx & Devetere, 2007) Such growth is enhanced by effective financial practices

Methods

Results

Conclusion